Korean Construction Industry
Has Peaks and Valleys

Only two contractors stay on the top 10 list for four decades

Hyundai Engineering and Construction Corp. and Daelim Industrial Co. have remained on the top 10 list of Korean contractors for the past four decades, showing the ups and downs of the domestic construction industry, a government survey indicates.
Dongah Construction Industrial Co., "Daehan Jincheok Corp."and
Samyang Gongmu Co."have fallen far below in the rankings or went bankrupt, according to figures on the 60-year history of the domestic construction industry released recently by the Ministry of Construction and Transportation. Sambu Construction Co. dropped from the third position in 1965 to the 26th place in 2006.
Data on the ranking of contractors during the period between 1965 and 2006 on the occasion of the 60th anniversary of Construction Day indicated that out of the contractors listed on the top 10 ranking in 1965, only Hyundai Engineering and Construction Corp. and Daelim Industrial Co. are still on the top 10 list of contractors.The top 10 rankings were based on the maximum contract amounts during the period between 1963 and 1995 and on the construction capability appraisal amount during the period between 1996 and 2006.
In 1965 when Korea advanced into the overseas construction market for the first time, Hyundai Engineering and Construction Corp. and Daelim Industrial Co. were each ranked 1st and 2nd, while Sambu Construction Co. and Dongah Construction Industrial Co. placed 3rd and 4th.
Daehan Jincheok Corp. Samyang Gongmu and Korea Electricity Development Corp. have disappeared.
In 1975, a decade later, Kukdong Engineering & Construction Co., Korea Construction Co. (predecessor of Byucksan Corp.), Samwhan Corp., Hanshin Engineering & Construction Co. and Miryung IND Co. (predecessor of Dongbu Corp.) were new entries on the top 10 list, but the higher ranking members on the list almost remained unchanged.
In particular, Samwhan Corp. which took the lead in the construction boom in the Middle East, jumped from 12th place to 8th place, while Kukdong E&C climbed from 20th place to 4th place.
In particular, Daewoo E&C was catapulted to the No. 2 position in 1985, while Doosan E&C, Hanjin E&C, Hanyang E&C and Samsung E&C joined the top 10 rankings.
However, Daewoo E&C topped the list in 2005, pushing out Hyundai E&C in 3rd place while Samsung E&C rose into second place. Afterwards, Hyundai E&C, GS E&C, Daelim Industrial, Hyundai Development Co., POSCO E&C, Lotte E&C, SK E&C and Kumho E&C, most affiliated with conglomerates, took up positions on the top 10 list.
Dongah Construction Industrial, who had ranked 10th since 1965, rose to 8th place in 2000 before it was disintegrated, demonstrating the drastic upheavals of the domestic construction industry.
Sohn Tae-rak, director of Construction Business Team at the Ministry of Construction and Transportation, said contractors badly need to tide over the effects arising from restructuring by advancing into foreign markets strategically through technology innovations in a bid to continue to serve as an engine behind the development of the local economy. nw

(left) Hyundai E&C President Lee Jong-soo and Daelim Industrial chairman Lee Yong-koo. Only Hyundai and Daelim Industrial stay on the top 10 list for four decades.